Example 1. Assume Taxpayer X has not filed a California personal income tax return for the 1999 taxable year. This is the first time that X has not filed a timely California personal income tax return. As a result of X's non-filing, the FTB mails a Request for Tax Return to X on January 15, 2001. When X does not timely respond to the Request for Tax Return, the FTB issues a Notice of Proposed Assessment (NPA) on March 20, 2001, assessing tax, a late filing penalty, and interest, but the NPA does not include a notice and demand penalty under Revenue and Taxation Code section 19133.
Example 2. Assume the same facts as in Example 1, and X does not file a California personal income tax return for the 2001 taxable year. Because X received an NPA for not filing a return for 1999, one of the four taxable years immediately preceding the 2001 taxable year, the FTB issues a Demand for Tax Return for the 2001 taxable year. If X fails to timely respond to the Demand for Tax Return, the FTB will issue an NPA that includes tax, a late filing penalty, interest, and a notice and demand penalty under Revenue and Taxation Code section 19133.
Cal. Code Regs. Tit. 18, § 19133
2. Amendment of subsections (b)(2) and (d) and new subsection (e) filed 10-19-2021; operative 10-19-2021 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 43).
Note: Authority cited: Section 19503, Revenue and Taxation Code. Reference: Section 19133, Revenue and Taxation Code.
2. Amendment of subsections (b)(2) and (d) and new subsection (e) filed 10-19-2021; operative 10/19/2021 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 43).